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Last Updated: Sunday, 16 July 2006, 14:04 GMT 15:04 UK
Teams bid to avert engine freeze
FIA president Max Mosley
Mosley is determined to slash costs in Formula One
Six major Formula One car manufacturers have offered their smaller rivals a 27m incentive to scrap plans for an engine development freeze.

The sport's governing body, the FIA, has decided to introduce a three-year freeze on engine technology from 2008.

Renault, Ferrari, Toyota, Honda, BMW and Mercedes have proposed to put 27m into a fund to guarantee affordable engines in the future.

But FIA president Max Mosley dismissed the plan as "wholly inadequate".

A statement from the manufacturers said: "We hope this significant gesture will encourage other stakeholders to support this initiative."

However, there was no unanimous agreement of the 12 teams entered for 2008 by a Sunday deadline set by the FIA.

"The result of all this is that the rules will stay as published and agreed," said the FIA. "As always, all agreements, including the Concorde Agreement, will be adhered to and enforced.

"The positive aspect is that all the manufacturers involved can now concentrate on important and relevant future technologies in Formula One which they have been invited to discuss with the FIA.

"This means that they can stop wasting vast sums of money trying to make the existing engines even faster than they are already."

The new rules for 2008 would see development banned for three seasons, forcing teams to use engines identical to those as of June this year.

The engine freeze rules, initiated by Mosley, has been introduced in a bid to cut costs.

Most of the car giants, apart from Renault and Ferrari, disagreed with the move.

Ferrari managing director Jean Todt had said: "We have to decrease our technology. We need to see a substantial cost reduction to be able to have 12 teams in business."

In order to push through a compromise which would see limited development, Mosley insisted the teams contribute to a fighting fund to ensure the future of smaller teams.

The FIA would then pay an independent engine builder, such as Cosworth, to develop competitive engines.

Mosley had demanded 10m a season but the manufacturers have offered slightly less although they have agreed to start the development restrictions a year early in 2007.

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